EQUATIONS >:( Flashcards
Total costs ?
Fixed cost + Variable cost
Unit costs ?
Total cost / Output
Revenue ?
Price X quantity sold
Contribution per unit ?
Price - Variable costs
Break even ?
Fixed costs / Price - Variable costs
Margin of safety ?
Actual sales - Breakeven sales
ARR
Annual average profit / Cost of investment
Net Cash Flow
Total inflows - Total outflows
Gross profit
Sales revenue - Cost of sales
Operating profit ( net profit )
Gross profit - Expenses
Profit before tax
Operating profit - Finance costs
Profit for the year ( Retained profit )
Net profit - Tax and dividends
Net current assets
Current assets - Current liabilities
Net assets
( Non current assets + Net current assets ) - Non current liabilities
Straight line depreciation
Initial cost - residual value / Value of asset
Current ratio
Current assets / Current liabilities
Acid test
Current assets - inventory / Current liabilities
Gearing
( Non current liabilities / Capital employed ) X 100
Debt to equity ratio
Debt / Equity X100
Interest cover
Operating profit / Interest payable
Asset Turnover
Revenue / Non current assets
Stock Turnover
Cost of stock / Average stock
Debtor days
Debtors / revenue X 356
Gross profit margin
Gross Profit / Revenue X100
